Pre-Budget Report 2016

Each year the Budget and Performance Committee publishes a Pre-Budget Report which sets out the key financial issues facing the Mayor as he prepares the budget for London.

The Mayor of London has moved to raise council tax for the first time in nine years, to address a gap in funding for the Metropolitan Police and there are a number of other holes to fill.

The London Assembly Budget and Performance Committee has published its Pre-Budget Report, which sets out the key issues facing the Met, Transport for London (TfL) and other functional bodies, ahead of the Mayor’s draft 2017-18 budget.

The ‘Pre-Budget Report’ made a number of key findings:

The Mayor is proposing to increase the police precept element of council tax bills by 1.99 per cent, adding £4.02 to the average Band D property. Government funding for the Met is due to fall by £17.4 million compared to 2015-16.

TfL plans to hugely increase its borrowing to finance its business plan. By 2020-2021, its level of debt will grow to more than £12 billion and interest costs will increase by over 50 per cent.

Fares income could be less than expected unless TfL solves the problem of London’s congested roads.

The London Legacy Development Corporation (LLDC) continues to make operating losses, and the cost of the London Stadium has increased by another £51 million this year.

The Mayoral Development Corporations continue to underperform and they remain a significant risk for the Mayor. Regeneration opportunities are under threat – in part because of a lack of leadership – the Chairman of the LLDC resigned in November and the Chair of the Old Oak and Park Royal Development Corporation (OPDC) resigned in May.

London’s share of the Growth Deal 3 funding is not enough to support the Mayor’s planned regeneration and economic development projects.